Sorting Cash Machine Market

Global Sorting Cash Machine Market Size (2024 to 2029)

The size of the global sorting cash machine market is anticipated to be worth USD 2.14 billion by 2029 from USD 1.75 billion in 2024, growing at a CAGR of 4.14% during the forecast period.

Sorting cash machines are automated devices widely used by banks, retailers and other businesses to streamline cash handling processes and these machines accurately count, sort and organize cash to improve operational efficiency and reduce human errors. Sorting cash machines are equipped with sensors and sorting mechanisms to identify different denominations of banknotes and detect counterfeit currency which further helps in security and compliance with regulations. Sorting cash machines find applications in various industries including banking, retail, gaming and hospitality, where they expedite cash handling tasks at checkout counters, automate cash counting in bank branches and manage large sums of cash generated from gaming activities.

The growing need for efficiency, cost savings, security and regulatory compliance is resulting in the rising demand for sorting cash machines. The global sorting cash machines market is experiencing steady growth and is expected to be fueled by technological advancements and the increasing adoption of cash automation solutions across industries. Overall, sorting cash machines plays a crucial role in modernizing cash handling processes and driving their continued demand and market expansion.

Global Sorting Cash Machine Market Drivers:

The growing number of cash transactions in retail and banking sectors and rising demand for efficiency and accuracy in cash handling processes are propelling the global sorting cash machine market growth. The retail and banking sectors are witnessing a growing number of cash transactions globally and a significant portion of transactions are still conducted in cash. An estimated 59% of retailers still receive a majority of their payments in cash, according to a survey conducted by the National Retail Federation and this shows the continued significance of cash transactions in retail environments. Businesses in retail and banking sectors are increasingly prioritizing efficiency and accuracy in cash handling processes to streamline operations and improve customer service. Sorting cash machines automate cash counting, sorting and verification tasks to ensure accuracy and speed up transaction times.

Cost savings through automation of cash handling tasks and enhanced security features, including counterfeit detection are boosting the growth rate of the global sorting cash machine market growth. It is evident that automating cash handling tasks with sorting cash machines reduces the reliance on manual labor and results in cost savings for businesses over time. For instance, an estimated 62% of retail businesses cite the reduction of cash handling costs as a significant benefit of adopting automated cash handling solutions, as per the survey conducted by Retail Systems Research. Furthermore, sorting cash machines are equipped with advanced counterfeit detection technologies, such as ultraviolet (UV) sensors, infrared (IR) sensors and magnetic sensors, which accurately identify counterfeit banknotes and prevent their circulation and this will help significantly enhance security and reduce the risk of financial losses due to counterfeit currency acceptance.

The growth of cash-intensive industries such as gaming and hospitality and the expansion of banking services in emerging markets are further fueling the growth rate of the global sorting cash machine market growth. Gaming establishments such as casinos and amusement parks rely heavily on cash transactions for activities such as slot machines, gaming tables and ticket sales. Sorting cash machines streamline cash-handling processes in these industries to improve efficiency and accuracy while reducing the risk of errors and theft. Likewise, the demand for sorting cash machines in the gaming and hospitality industries is growing gradually and is resulting in global market growth. The need for efficient cash-handling solutions to support increased transaction volumes is rapidly growing with the increasing penetration of banking services in emerging markets. For instance, the number of adults with bank accounts in emerging markets increased from 47% in 2011 to 63% in 2020, says the reports from the World Bank. Sorting cash machines plays a vital role in automating cash-handling tasks in bank branches to improve operational efficiency and enhance customer service.

The growing need for faster checkout processes in retail environments, reduction of human error in cash counting and sorting, increasing demand for efficient cash recycling solutions and the emergence of smart safe technologies for cash storage are supporting the growth of the sorting cash machines market. The expansion of ATM networks in remote and underserved areas, growth of e-commerce and cash-on-delivery transactions, rising need for transparency and accountability in cash handling and rising concerns about hygiene and cleanliness in cash handling processes are promoting the global market growth.

Global Sorting Cash Machine Market Restraints:

The high initial cost of sorting cash machines, resistance to technological change among some businesses and limited adoption of sorting cash machines in cashless payment environments where electronic transactions are prevalent are primarily hampering the growth of the global market. Concerns about the reliability and maintenance of sorting cash machines, competition from traditional cash handling methods, such as manual counting and sorting and regulatory hurdles and compliance requirements add complexity to market entry further inhibiting the growth rate of the global market.

REPORT COVERAGE:

This research report on the global sorting cash machine market has been segmented and sub-segmented based on product type, end-user and region.

Global Sorting Cash Machine Market - By Product Type:

• Note Sorter
• Coin Sorter

Based on product type, the note-sorter segment dominated the market, holding 71.4% of the global market share in 2023 and the domination of the note-sorter segment is estimated to continue throughout the forecast period. The note sorter segment is expected to grow at a CAGR of 6.87% during the forecast period owing to the increased usage of note sorter machines by banks worldwide and the introduction of multi-currency note sorters to meet global demand primarily. For instance, an estimated 80% of the banks globally employ note-sorting machines. The usage of the note sorter machines is high in the Asia-Pacific region compared to other regions due to their high cash usage. Factors such as the integration of AI and machine learning for enhanced counterfeit detection, the implementation of cash management solutions in emerging economies, increased cash transactions in retail and banking sectors and the growing need for efficient cash management and counterfeit detection are further propelling the expansion of the note sorter segment in the global market.

The coin sorter segment is anticipated to register a CAGR of 5.4% during the forecast period in the global market. The growth of the coin sorter segment is majorly driven by increasing demand for automated cash handling in retail and transportation, rising need for accurate coin counting and sorting in vending and gaming industries and technological advancements improving efficiency and reliability.

Global Sorting Cash Machine Market - By End-User:

• Banks
• Supermarkets
• Hospitals
• Others

Based on end-user, the banks segment led the market and accounted for 41.4% of the global market share in 2023. The banks segment is also expected to be the fastest growing segment during the forecast period and register a CAGR of 7.6% during the forecast period. The domination of the banks segment is majorly credited to the growing adoption of automated cash-handling solutions to improve operational efficiency and the rising need for enhanced security measures in banking operations. For instance, more than 60% of banks worldwide have implemented cash recycling systems for improved cash management efficiency. Cash-intensive economies like India and China account for a significant portion of bank-related cash transactions, which is boosting the usage of sorting cash machines in the banking sector and boosting segmental expansion. Banks in Europe and North America are increasingly investing in advanced cash handling technologies to combat rising fraud incidents and are also promoting the adoption of sorting cash machines in banks and supporting the growth rate of the banks segment.

The supermarket segment is another major segment and is expected to register a notable CAGR during the forecast period. The growth of the supermarket segment is primarily driven by rising demand for cash-handling automation to expedite checkout processes and an increase in the number of supermarkets and hypermarkets worldwide.

Global Sorting Cash Machine Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The Asia-Pacific regional segment stood as the top-performing region for sorting cash machines in 2023, holding for 40.9% of the global market share in 2023 and is predicted to register a promising CAGR during the forecast period. The growth of the Asia-Pacific market is primarily driven by rapid urbanization, widespread expansion of the banking sector, growing retail industry and cash-based transactions and increasing number of initiatives by the governments of Asia-Pacific countries to promote financial inclusion. The expansion of e-commerce platforms that drive demand for cash handling solutions in logistics and warehousing, the introduction of advanced security features such as biometric authentication in sorting cash machines and collaborations between banks and fintech companies to deploy innovative cash management solutions are further boosting the growth rate of the Asia-Pacific regional market. China and India are playing the biggest role in the Asia-Pacific regional market.

North America is another noteworthy regional market for sorting cash machines and is anticipated to account for a substantial share of the global market during the forecast period. Factors such as high adoption of advanced banking technologies, stringent regulatory standards enhancing security measures and the growing number of retail banks and ATMs are propelling the growth of the sorting cash machines market in North America. The U.S. is expected to account for a dominating share of the North American market during the forecast period owing to the implementation of contactless payment systems and the rising trend of cash recycling machines in banks and retail outlets.

Europe did well in 2023 and is anticipated to hold a considerable share of the global market during the forecast period. Modernization of banking infrastructure in Europe, the growing demand for cash management solutions in retail and hospitality sectors and rising emphasis on reducing cash handling costs and improving efficiency are driving the growth of the European market.

KEY MARKET PLAYERS:

Companies playing a leading role in the global sorting cash machine market include Giesecke & Devrient GmbH, De La Rue plc, Toshiba Infrastructure Systems & Solutions Corporation (TOSHIBA Corp.), Cummins-Allison Corp. (Crane Payment Innovations Inc.), Julong Europe GmbH (Julong Co., Ltd.), Glory Global Solutions Limited, GRGBanking (GRG Banking Equipment Co., Ltd.), Kisan Electronics, Laurel Bank Machines Co. Ltd., Bcash Electronics Co., Arihant Maxsell Technologies Pvt Ltd, Longgang Xinda Electronic Equipment Co., Ltd., Aditya Systems and Shanghai Guao Electronic Technology Co., Ltd.